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Rec Room’s civil lawsuit against a Canadian minor ended on October 6, 2025, when a federal court entered a stipulated consent judgment. The order imposes a $50,000 judgment and a three-year injunction; the sources available do not establish whether the money was paid. This was a civil resolution, not a criminal conviction.
What Rec Room alleged in its 2023 lawsuit
Rec Room filed the case in October 2023 in the U.S. District Court for the Western District of Washington. The complaint identified the defendant by the initials M.Z. and described him as a Canadian minor believed to be about 16. An April 2024 court order listed claims for breach of contract, fraud, copyright infringement, circumvention of technological measures, and tortious interference with contractual relations. Those were claims Rec Room made; the April order did not decide that they were true. The court’s April 2024 order describes the complaint and the case’s procedural status.
In contemporaneous reporting, GeekWire said Rec Room accused M.Z. of repeatedly violating its community standards, evading bans with alternate accounts, and creating and selling cheats. The complaint reportedly alleged at least 61 alternate accounts and described cheats that could let avatars pass through walls, have infinite health, or carry weapons between Rec Room games. These details remain allegations attributed to Rec Room, not independently established findings. GeekWire’s October 18, 2023 report summarized the allegations.
How the case was resolved
The case did not end in a reported trial verdict. The parties stipulated on September 25, 2025, that judgment should be entered for three years, and the court entered the consent judgment on October 6, 2025. In it, the parties stipulated that M.Z. lived in Canada, had repeatedly been banned and evaded bans by creating new accounts, hacked and cheated in violation of Rec Room’s Terms of Service, and downloaded, used, marketed, or facilitated cheat software. The judgment also says claims in the complaint that it did not address were withdrawn. The court’s docket contains the consent judgment.
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Because the outcome was stipulated, it should be described as a consent judgment—not as a finding after a contested trial. Nor was it a criminal conviction: this was a civil lawsuit.
What the $50,000 judgment means—and what is unknown
The court entered judgment against M.Z. for $50,000. That is the amount ordered in the judgment, not proof that the amount was paid. The materials cited here do not establish payment, and the judgment amount should not be described as a confirmed transfer or collection.
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What the three-year injunction prohibits
The injunction applies for three years and bars M.Z. from a range of conduct connected to Rec Room. Its restrictions include:
- Creating or logging into a Rec Room account, or playing Rec Room games.
- Commercial activity involving Rec Room, including selling cheats or hacks or Rec Room content or accounts.
- Visiting or interacting with Rec Room social-media accounts, or streaming or posting Rec Room gameplay.
- Downloading or using cheats.
- Threatening or harassing Rec Room, its employees, or community members.
The order also requires destruction of source code or documents related to Rec Room cheats. It warns that violations could subject M.Z. to the court’s contempt authority. The court retained jurisdiction to enforce the injunction even as it administratively closed the case. The October 6, 2025 consent judgment sets out the injunction and enforcement terms.
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Why the case took time to resolve
Because the defendant was a minor, the court raised questions about his capacity to be sued and whether he needed a guardian ad litem. In April 2024, the judge directed Rec Room to address those issues and stayed other deadlines while awaiting its response. In July 2024, the court appointed Denise Ashbaugh, Jeremy Roller, and Jonah Harrison to represent M.Z. The later stipulated judgment resolved the case.
What the public record does not establish
The cited materials establish the judgment’s date, amount, duration, and restrictions. They do not establish whether the $50,000 was paid or whether the court took further enforcement action after entry of the judgment. Those questions would require review of later docket activity. The available records identify the defendant only by initials; there is no basis here to identify or speculate about him.
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